The level of success of a business determines if it would graduate from being a private to a public limited company. Not every business can start out huge.
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when running an esterblisment the growth and expansion in size and profitability is what every business owner would like to see.But after sometime of running the outfit solely,and a need arise for expansion,you have to allow other investors to come in.According to my own point of view between public limited company and private limited company I would like to establish on a private limited company this is because I do not want too many share owners in my company and also I want my word a policy to stand
I would love to establish a private limited company with just a handful of shareholders.A Public Limited Company is a company that has hundreds of shareholders. A Private Limited Company is a company that has a handful of shareholders. Investing n a Public Limited Company is open to the general public, anyone can buy shares, and sell when ever he wants. In a Private Limited Company, only the people in the close circle can invest, possibly the relatives and friends. The Public Limited Companies are the companies that have huge capital, think about the figures in millions. The Private Limited Companies have a comparatively small capital, something like $200-$300 K.
If you want to establish a Private Limited Company, you can easily do so by getting joining hands with a couple of like-minded people, raising capital from the people interested in business, and registering the company with the company registration office. The process of establishing a Public Limited Company is almost similar but you need a lot of investment. These companies have to work for a couple of years before they can open publically for investment.